How Does Kraken’s New Deposit Option Work?
Kraken has integrated with crypto payments network Mesh to let users transfer digital assets directly from another exchange account without manually copying a wallet address, targeting one of the most common operational risks in crypto transfers.
The new option appears inside Kraken’s existing deposit process. After selecting an asset and blockchain network, users can choose to deposit from “another exchange” rather than relying on the standard wallet address or QR code method.
Selecting the option opens a Mesh interface where the user chooses the exchange holding the funds, signs in to that platform and confirms the amount to transfer. Some exchanges, including Coinbase, use their own login window during authentication.
Once approved, the funds are still transferred on-chain to the user’s Kraken deposit address and credited like any other blockchain deposit. Mesh effectively handles the steps between selecting the source exchange and initiating the transaction, reducing the need for users to manually copy addresses between platforms.
If the process is cancelled or the window is closed before confirmation, no transaction is initiated.
Can SmartFunding Reduce The Need For Multiple Transactions?
The integration also includes Mesh’s SmartFunding feature, which can use other assets held on the source exchange when the user does not have enough of the cryptocurrency they want to deposit.
For example, a user seeking to transfer 10,000 USDC while holding only 7,000 USDC on the external exchange could use other balances to cover the remaining amount. Mesh would arrange for roughly 3,000 USDC worth of those assets to be converted before completing the transfer.
That process could remove several manual steps that would otherwise require the user to sell another asset, wait for the trade to settle within the exchange account and then initiate a separate withdrawal.
Any trading, conversion or network fees associated with that part of the transaction are determined by the external exchange rather than Kraken. Kraken said it does not charge an additional fee for using the Mesh deposit option, although normal withdrawal or blockchain fees may still apply at the sending platform.
Investor Takeaway
The integration is less about changing how crypto moves on-chain and more about hiding some of the complexity from users. If exchange-to-exchange transfers become easier and less prone to address errors, platforms may compete increasingly on account connectivity and transfer experience rather than relying only on trading features.
What Does Mesh Handle During The Transfer?
Mesh manages the connection and authentication process with the external exchange, including two-factor verification where required. The structure is similar to account-linking services used in traditional finance, where a third-party provider connects accounts without requiring the receiving platform to hold the user’s login credentials.
Kraken said it does not see or store credentials used to access the external exchange. That separation is important because the feature requires users to authenticate with another trading platform while remaining inside Kraken’s deposit workflow.
Coinbase is supported at launch where locally available, while additional exchanges are expected to be added later. Users whose source platform is not supported can continue to deposit through a standard blockchain address.
The feature is currently available through Kraken’s website. Mobile support is planned for a later stage, which means adoption may initially depend on users who manage transfers through the desktop interface.
Why Are Exchanges Trying To Simplify Crypto Transfers?
Blockchain transfers remain one of the areas where cryptocurrency services differ sharply from traditional financial applications. Users typically need to confirm both a long wallet address and the correct blockchain network, and mistakes can be irreversible once a transaction is confirmed.
That creates particular friction for customers who keep balances across several exchanges. Moving assets between platforms can involve opening two accounts simultaneously, copying deposit details, checking network compatibility and confirming that the sending exchange supports the same chain.
Kraken’s Mesh integration keeps the underlying on-chain transaction but removes several of those manual actions. The approach could make transfers feel closer to moving funds between linked financial accounts while preserving blockchain settlement underneath.
For exchanges, reducing transfer friction may also make it easier for users to consolidate assets onto a preferred platform. A customer who can connect another exchange account and initiate a transfer without handling wallet addresses faces fewer practical barriers to moving liquidity.
The broader question is whether similar account-to-account systems become common across major crypto platforms. If more exchanges connect through infrastructure providers such as Mesh, manual address-based transfers may become less important for everyday users even though blockchain addresses continue to handle settlement behind the interface.